Q3 2014 earnings slides final

Bruker Corporation (NASDAQ: BRKR)
Q3 2014 Earnings Presentation
Frank Laukien, President & CEO
Charles Wagner, EVP & CFO
Joshua Young, VP, Investor Relations
November 6, 2014
Innovation with Integrity

Any statements contained in this presentation that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein are based on current expectations, but are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including, but not limited to, risks and uncertainties relating to adverse changes in conditions in the global economy and volatility in the capital markets, the integration of businesses we have acquired or may acquire in the future, changing technologies, product development and market acceptance of our products, the cost and pricing of our products, manufacturing, competition, dependence on collaborative partners and key suppliers, capital spending and government funding policies, changes in governmental regulations, realization of anticipated benefits from economic stimulus programs, intellectual property rights, litigation, and exposure to foreign currency fluctuations and other risk factors discussed from time to time in our filings with the Securities and Exchange Commission. These and other factors are identified and described in more detail in our filings with the SEC, including, without limitation, our annual report on Form 10-K for the year ended December 31, 2013. We will also be referencing non-GAAP financial measures in this presentation. A reconciliation of non-GAAP to GAAP results is available in our earnings press release and in this presentation.
Bruker Corporation Safe Harbor & Reg. G Statement
© Bruker Corporation
2

Q3 & YTD 2014 Business Update
3

$0.20
$0.14
Q3-13
Q3-14
Q3-14 Financials
Revenues [$ m]
Non-GAAP EPS
Q3 2014 revenue and profitability down year-over-year
-4%
-30%
4
439
420
Q3-13
Q3-14
Q3 2014 Performance
Revenues decline 4% y-o-y
1.BioSpin and BMAT Group revenues decline, due to weak year-to-date orders
2.CALID revenue decline driven by CAM restructuring
3.Revenue declines across Asia more than offset good growth in the Americas
4.BEST delivered strong revenue growth
Non-GAAP EPS decline of 30% y-o-y driven by lower revenue and higher tax rate in Q3-14

$0.46
$0.46
YTD 2013
YTD 2014
Q3-14 YTD Financials
Revenues [$ B]
Non-GAAP EPS
Q3-14 YTD performance adversely affected by demand, CAM restructuring, and currency
+1%
flat
5
1.29
1.30
YTD 2013
YTD 2014
Q3-14 YTD Performance
Revenue growth of 1% y-o-y
1.BioSpin revenue growth of 2%, led by strength in Pre-Clinical Imaging division
2.BMAT revenue decline of 1% driven by weak semi & data storage demand
3.CALID revenue decline of 1% due to $15M CAM decline, timing of Detection projects
4.Low single-digit revenue growth in Europe, mid-single digit growth in Americas, offset by high-single digit revenue decline in Asia
Non-GAAP EPS flat y-o-y, including negative currency impact of $0.04
FCF improves by $46M, totaling $18M for YTD 2014, compared to ($28M) for YTD 2013

Bruker BioSpin Group
Revenue decline in NMR partially offset by growth in Pre-Clinical Imaging Division
Good growth in the Americas offset by declines in Europe & Asia
After generating above-market growth from 2010-2013, NMR demand has slowed; YTD NMR order bookings decline y-o-y
In process of identifying actions to right-size BioSpin cost structure; Agilent exit from NMR market may benefit 2015
Bruker CALID Group
LSC Division growth driven by Q-TOF products and MALDI Biotyper
Optics Division continues healthy growth and improved profitability
Detection Division negatively impacted by export license delays
CAM Division revenues decline by $10M y-o-y in quarter
Good progress on CAM restructuring: ICP-MS products sold to Analytik Jena in September; GC products sold to TechComp on October 31st; restructuring and product transfer ongoing
6
GROUP OVERVIEW: Q3 2014 Performance & Outlook

Bruker MAT Group
BMAT Group revenue declines high-single digits
Revenue declines across 3 of 4 Divisions
Semiconductor & data storage demand remains weak
Steep decline in Asia offsets growth in Europe & Americas
Demand sluggish from Minerals & Mining and Metals markets
Bookings growing in Nano Surfaces Division, but AXS Division bookings remain weak
Continued investment in the life science/cell biology markets
BEST Segment
Strong revenue growth driven by healthcare and ‘Big Science’ customers
Higher profitability also due to recent expense reductions and restructuring actions
GROUP OVERVIEW: Q3 2014 Performance & Outlook
7

Commitment to transforming Bruker for better performance
8
•Continue existing transformation to drive towards operational excellence: redesign-to-cost; outsourcing; procurement initiatives; restructuring, etc.
•Committed to making investments that drive innovation and enable entry into new growth markets
•Complete the CAM Division restructuring in H1-15
•Execute plans for right-sizing BioSpin in H1-15

Q3 2014 Financial Update
9

NON-GAAP FINANCIAL PERFORMANCE: Q3 2014 Overview
[$ m, except EPS]
Q3 2014
Q3 2013
Δ
Revenues
419.8
439.0
-4%
Operating Income
35.9
47.3
-24%
Margin (%)
8.6%
10.8%
EPS
$0.14
$0.20
-30%
Free Cash Flow
3.6
28.3
-24.7M
Lower revenue reflects weak YTD bookings and a $10M revenue decline in CAM Division
Profitability decline due to lower revenues, despite good control over spending
Solid improvements in working capital reflects lower inventory and FX benefits
Continue to maintain healthy net cash position
10
COMMENTS
[$ m]
Sep 30,2014
Dec 31,2013
Δ
Net Cash
87.1
83.7
4%
Working capital (WC)*
737.2
822.6
-10%
WC-to-revenue ratio
0.40
0.45
-0.05
* WC = (Accounts Receivable + Inventory – Accounts Payable)

Q3 2013
Organic
Currency
Acquisition
Q3 2014
$439.0
$419.8
Q3 2014 revenue bridge
Organic revenue decline of $21.2M, as revenue in all three Groups declines
Strengthening dollar in September drove the slight revenue headwind; bigger impact expected on Q4-14 revenues
Acquisition impact from prior acquisitions of Prairie and Vutara in BMAT Group
11
Q3 2014 DRIVERS
Q3 2014 Revenue Bridge [$ m]
$-21.2
$-1.5
$3.5
Organic
Currency
Acquisitions & Divestitures
Total
-4.8%
-0.4%
0.8%
-4.4%
Q3 2014 Revenue for Bruker Corp.

Q3 2014 Non-GAAP Results
Gross margins are down primarily due to lower volumes and negative mix
Operating expenses remain well-controlled, despite investments in new capabilities
Q3-13 had an unusually low tax rate due to jurisdictional mix of profits and certain discrete items
12
COMMENTS
[$ m]
Q3 2014
Q3 2013
Δ
Total Revenues
419.8
439.0
-4%
Gross Profit
185.5
198.2
-6%
Margin (% of sales)
44.2%
45.1%
SG&A
-107.5
-105.4
2%
(% of revenues)
25.6%
24.0%
R&D
-42.1
-45.5
-7%
(% of revenues)
10.0%
10.4%
Operating Income
35.9
47.3
-24%
(% of revenues)
8.6%
10.8%
Tax Rate
27.0%
20.0%
700 bps
Net Income*
23.8
33.8
-30%
EPS
$0.14
$0.20
-30%
Shares Outstanding
169.6
168.7
NM
* Attributable to Bruker
Sum of items may not total due to rounding

Q3 2014 Reconciliation of GAAP and Non-GAAP Results
[$ m]
Q3 2014
Q3 2013
GAAP Operating Income
4.9
31.5
Restructuring Costs
16.2
8.6
Acquisition Related Costs
1.4
1.3
Purchased Intangible Amortization
5.1
5.1
Other Costs
8.3
0.8
TOTAL
31.0
15.8
Non-GAAP Operating Income
35.9
47.3
Non-GAAP Net Interest Income (Expense) & Other
-2.2*
-4.7
Non GAAP Profit Before Tax
33.7
42.6
Taxes
-9.1
-8.5
Non-GAAP Tax Rate
27.0%
20.0%
Minority Interest
-0.8
-0.3
Non-GAAP Net Income**
23.8
33.8
Non-GAAP EPS
$0.14
$0.20
13
*Excludes $6.3M of net gains for 2014
** Attributable to Bruker

Q3-13 YTD
Organic
Currency
Acquisition
Q3-14 YTD
$1,287.3
$1,300.9
Q3-14 YTD revenue bridge
Growth in BioSpin offset by declines in CALID and BMAT on YTD basis
Stronger Euro versus dollar on YTD basis drives positive currency contribution
BMAT acquisitions of Vutara and Prairie drive a positive 0.8% revenue contribution
14
Q3-14 YTD DRIVERS
Q3-14 YTD Revenue Bridge [$ m]
-$5.2
$8.8
$10.0
Organic
Currency
Acquisitions & Divestitures
Total
-0.4%
0.7%
0.8%
1.1%
Q3-14 YTD Revenue for Bruker Corp.

Q3-14 YTD 2014 Non-GAAP Results
Gross margins are down primarily due to changes in foreign exchange rates
Operating margins are down ~90 basis points due to changes in foreign exchange rates
Tax rate is consistent with full year guidance of 25-28%
15
COMMENTS
[$ m]
Q3-14 YTD
Q3-13 YTD
Δ
Total Revenues
1,300.9
1,287.3
1%
Gross Profit
584.5
584.2
NM
Margin (% of sales)
44.9%
45.4%
SG&A
-331.2
-318.6
4%
(% of revenues)
25.5%
24.7%
R&D
-132.6
-141.4
-6%
(% of revenues)
10.2%
11.0%
Operating Income
120.7
124.2
-3%
(% of revenues)
9.3%
9.6%
Tax Rate
28.0%
25.9%
210 bps
Net Income*
77.4
77.1
NM
EPS
$0.46
$0.46
NM
Shares Outstanding
169.5
168.4
NM

Q3-14 YTD Reconciliation of GAAP to Non-GAAP Results
[$ m]
Q3-14 YTD
Q3-13 YTD
GAAP Operating Income
60.9
87.2
Restructuring Costs
29.3
13.6
Acquisition Related Costs
3.0
2.2
Purchased Intangible Amortization
15.1
15.3
Other Costs
12.4
5.9
TOTAL
59.8
37.0
Non-GAAP Operating Income
120.7
124.2
Non-GAAP Net Interest Income (Expense) & Other*
-9.7
-18.8
Non GAAP Profit Before Tax
111.0
105.4
Taxes
-31.1
-27.3
Non-GAAP Tax Rate
28.0%
25.9%
Minority Interest
-2.5
-1.0
Non-GAAP Net Income**
77.4
77.1
Non-GAAP EPS
$0.46
$0.46
16
*Excludes $6.6 and $2.4 million of net gains for 2014 and 2013
**Attributable to Bruker

Q3-14 YTD Cash Flow Statement
Cash conversion cycle improves by 29 days compared to Q3-13
–DIO: 230
–DSO: 60
–DPO: 48
–CCC: 241
Capex spending is down significantly y-o-y
17
COMMENTS
[$ m]
Q3-14 YTD
Q3-13 YTD
Δ
Net Income
33.1
45.9
-12.8
Depreciation & amortization
47.6
45.4
2.2
Changes in working capital*
2.8
-32.6
35.4
Other
-38.5
-45.1
6.6
Operating cash flow
45.0
13.6
31.4
Capital expenditures
-26.7
-41.3
14.6
Free cash flow
18.3
-27.7
46.0

2014 Guidance
18

Bruker’s revised FY 2014 Guidance
Revenues (reported)
$1.81 - $1.84 billion
Non-GAAP EPS
$0.72 to $0.78
19
Bruker FY 2014 Guidance
FX changes reduce Q4-14 revenue by 4% y-o-y
Excluding currency impact, Q4-14 revenue flat or declining y-o-y due to CAM restructuring and YTD demand weakness
Tax rate: 25-28%
Wide EPS range due to potential variability in Q4-14 results
Capex expected to be around $40M in FY2014
Current currency assumptions: Yen/USD: 110 EUR/USD: 1.26
ASSUMPTIONS

Appendix
20

Q3 2014 GAAP Results
[$ m]
Q3 2014
Q3 2013
Δ
Total Revenues
419.8
439.0
-4%
Gross Profit
167.3
193.2
-13%
Margin (% of sales)
39.9%
44.0%
SG&A
-108.0
-105.7
2%
(% of revenues)
25.7%
24.1%
R&D
-42.1
-45.5
-7%
(% of revenues)
10.0%
10.4%
Operating Income
4.9
31.5
-84%
(% of revenues)
1.2%
7.2%
Net Income*
5.5
16.6
-67%
EPS
$0.03
$0.10
-70%
Shares Outstanding
169.6
168.7
NM
21

Q3-14 YTD GAAP Results
[$ m]
Q3-14 YTD
Q3-13 YTD
Δ
Total Revenues
1,300.9
1,287.3
1%
Gross Profit
547.5
569.3
-4%
Margin (% of sales)
42.1%
44.2%
SG&A
-332.5
-319.6
4%
(% of revenues)
25.6%
24.8%
R&D
-132.6
-141.4
-6%
(% of revenues)
10.2%
11.0%
Operating Income
60.9
87.2
-30%
(% of revenues)
4.7%
6.8%
Net Income*
30.6
44.9
-32%
EPS
$0.18
$0.27
-33%
Shares Outstanding
169.5
168.4
NM
22
Sum of items may not total due to rounding * Attributable to Bruker

Balance sheet
[$ m]
Sep 30, 2014
Dec 31, 2013
Δ
Cash, Cash Equivalents & Short-term investments
442.3
438.7
1%
Financial Debt
355.2
355.0
NM
Net Cash
87.1
83.7
4%
23
[$ m]
Sep 30, 2014
Dec 31, 2013
Δ
Total Assets
1,910.6
1,988.3
-4%
Working Capital*
737.2
822.6
-10%
Intangible & Other Assets
245.9
256.9
-4%
* WC = (Accounts Receivable + Inventory - Accounts Payable)

Q3 2014 Cash Flow Statement
Lower profit, higher working capital are the primary drivers of y-o-y difference in free cash flow
24
COMMENTS
[$ m]
Q3 2014
Q3 2013
Δ
Net Income
6.3
16.9
-10.6
Depreciation & amortization
17.6
15.2
2.4
Changes in working capital*
-16.0
9.0
-25.0
Other
5.6
-2.6
8.2
Operating cash flow
13.5
38.5
-25.0
Capital expenditures
-9.9
-10.2
0.3
Free cash flow
3.6
28.3
-24.7

Q3 SEGMENT RESULTS: BSI and BEST GAAP Performance
[$ m]
Q3 2014
Q3 2013
Δ
REVENUE
Scientific Instruments (BSI)
383.4
410.6
-7%
Organic Revenue Growth (%)
-7.1%
0.6%
Energy & Supercon Technologies (BEST)
40.0
32.5
23%
Organic Revenue Growth (%)
22.6%
-27.1%
Corporate Eliminations & Other
-3.6
-4.1
Total Revenue
419.8
439.0
-4%
OPERATING INCOME
Scientific Instruments (BSI)
0.8
33.8
-98%
Energy & Supercon Technologies (BEST)
3.9
-0.8
588%
Corporate Eliminations and Other
0.2
-1.5
Total Operating Income
4.9
31.5
-84%
25

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